A breakeven point is the level of sales at which total revenues equal total costs,...
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A breakeven point is the level of sales at which total revenues equal total costs, resulting in neither profit nor loss. It can be calculated by dividing total fixed costs by the contribution margin per unit. Criteria for classifying breakeven points: Required attributes: Total fixed costs Contribution margin per unit Variable attributes: Selling price per unit Variable cost per unit Example: Given: Total fixed costs $ Contribution margin per unit $ Selling price per unit $ Variable cost per unit $ break even point in sales dollars
A breakeven point is the level of sales at which total revenues equal total costs, resulting in neither profit nor loss. It can be calculated by dividing total fixed costs by the contribution margin per unit.
Criteria for classifying breakeven points:
Required attributes:
Total fixed costs
Contribution margin per unit
Variable attributes:
Selling price per unit
Variable cost per unit
Example:
Given:
Total fixed costs $
Contribution margin per unit $
Selling price per unit $
Variable cost per unit $
break even point in sales dollars
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